£400,000+ R&D tax credits cash in one week

It has been a busy week at ip tax solutions with three R&D tax credit claims securing a total of over £400,000 of R&D tax credits landing in just one week!

The successful companies are all technology companies building new software platforms based from Manchester to London. The claims were agreed within 28 days without query by HM Revenue & Customs. This continues ip tax solutions’ 100% success record.

One of the claims (worth £126,000) was the result of a chance 10 minute discussion with the CEO – he had wrongly assumed that the company’s activities and structure meant that it would not qualify for SME R&D tax relief. I helped explain how the relief could apply based on their facts. With just one week to go until the deadline for making the claim elapsed, we pulled together a robust technical report and calculations and filed the claim with HMRC on time.

The company was thrilled to receive over £100k cash in less than a month!

The other two tech companies each received £175,000 and £107,000 respectively wired directly to their bank accounts within 30 days (#happyclients).

Don’t risk missing out on your R&D tax credit claim – a 10-15 minute conversation might be all it takes to help assess your eligibility for a claim and with average claims of over £100,000 for this week’s successful claimants it would be a shame to miss out…!

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GF004 – Get Funded! Podcast | SEIS | Get ready to slice the pie!

Get funded!In this 4th episode of the Get Funded! podcast we cover:

“Get ready to slice the pie!”

This show is all about the need to issue shares in return for a cash investment if it is to be eligible for SEIS or EIS under current rules.

We also cover what doesn’t qualify e.g. loans, and some tips around types of shares and nominal values of shares to help you get the SEIS share capital structure right from the outset.

Please subscribe and leave us a rating on iTunes – this will help this podcast get found by more entrepreneurs and help the UK get ahead in raising funding for exciting new startups!

GF003 – Get Funded! podcast – What are the key tax benefits of SEIS?

Get funded!In this 3rd episode of the Get Funded! podcast we explore the key tax benefits of the Seed Enterprise Investment Scheme (SEIS) including:

  • 50% income tax relief
  • potential for 14% capital gains tax shelter
  • IHT exemption after 2 years
  • CGT free sale after 3 years
  • Sideways income tax relief should the startup fail

All in all this can amount to up to 86.5% tax shelter for the investor so only 13.5% capital may be at risk.

GF002 – Why should SEIS matter to my startup?

Get funded!In Episode 2 of the Get Funded! podcast we cover:

  • why and how SEIS is becoming so popular?
  • why many business angels and seasoned investors will expect you to have considered SEIS?
  • an outline of the tax benefits that SEIS provides for investors
  • why you might be at a disadvantage pitching for investment without SEIS?

Leave us any comments or questions in the comments section.

GF001 Get Funded! – What is SEIS?

Get funded!We are thrilled to announce the launch of a new podcast: “Get Funded!”

A podcast that aims to share practical information and tips on the workings of the Seed Enterprise Investment Scheme (SEIS) and the Enterprise Investment Scheme (EIS) with entrepreneurs, CEOs and founders.

I am afraid that there is little in terms of bells and whistles in terms of the podcast production at this stage (maybe that’ll come later ;) ), as we are more concerned with getting the information and tips out there as quickly as possible and exploring whether this might be a more digestable medium than text….

Let us know your comments and thoughts.

In this first “Get Funded!” podcast we cover:

  • what is SEIS?
  • who benefits from SEIS?
  • which companies is SEIS aimed at?
  • why is SEIS necessary?

This first podcast is really just an initial primer – we will aim to keep them as short and as easy to digest as possible.

What will the 7 May election mean for UK tech companies?

As we run up to the 7 May 2015 election, thoughts turn to what the result might mean for UK startup and fast growth companies?

Techcrunch has noted the partisan approach that UK tech companies seem to be taking in writing a letter in support of the Conservative Party and points out that this stance should be taken with a pinch of salt (although I understand the article was penned by a declared Labour supporter ;) ).

I don’t want this to fall into a political rant but I sense there is a lack of transparency in the Labour party’s stance on how it might build on the successes that we have already seen in terms of tax policy for UK tech and fast growth companies.

For example, the Conservatives have made great strides in the following areas:

  • The introduction of Seed Enterprise Investment Scheme (SEIS) and its generous tax incentives to support investment into early stage companies to supplement the Enterprise Investment Scheme (EIS) aimed at more established companies
  • The improvements made to the Enterprise Management Incentive (EMI) share option scheme to allow participants to benefit from Entrepreneur’s Relief despite potentially not holding the shares for 12 months nor even holding more than 5% of the share capital
  • Improvements to the R&D tax credit incentive scheme that now boasts a 33.3% return for claimant SME companies
  • Introduction of the Patent Box at its beneficial 10% corporation tax rate – despite challenges from across the EU
  • Enhancements to Entrepreneur’s Relief that now allows entrepreneurs to benefit from a 10% CGT rate on the first £10m of lifetime gains
  • Reduction in the main corporation tax rate down to 20%
  • Plus video games tax relief and other reliefs for creative and digital companies

Taken together these measures keep the UK on track to meet George Osborne’s pledge to make it the most attractive place to do business in the G20.

It is worth noting that many of the above tax incentives were first introduced during Labour’s last bout in office; albeit in a more watered down form in most cases – although who’s to say that Labour might not have followed a similar path had they stayed in the office…? Truth is, we don’t know.

And herein lies the problem…

Labour do not appear to have shared much detail on their thinking and policies around these areas and, in particular, these specific tax incentives. The danger is that an incoming party wants to “shake things up” and “make their mark” which may threaten the stability and progress made around these important areas for UK entrepreneurs.

We may just be about to find out more…

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5 essential tax tips for entrepreneurial tech companies – webinar

thingsDescription: In this 45 minute webinar, Steve Livingston, founder of innovation tax specialists – ip tax solutions, walks entrepreneurs / founders of UK technology and digital companies through 5 vital tax planning opportunities that are often overlooked – potentially losing out on £100,000’s of cash tax savings!

These 5 essential tax tips are based on UK Government tax incentives that have been enacted to help and support tech and digital companies just like yours…

This free webinar aims to provide participants with an awareness to be able to move forward in exploring these cash saving (and potentially raising) opportunities within your business.

You should ideally be the founder, CEO, CFO of a UK based technology, digital or creative company to get the most out of it.

Date & Time: Thu, May 7th, 2015 at 1:00 pm BST

Registration

Please register for the above meeting by visiting this link: http://iptaxsolutions.enterthemeeting.com/m/FQZFF9B3

Once you have registered, we will send you the information you need to join the webinar.

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Fancy an extra 5% on your R&D tax relief?

The UK R&D tax credit incentive scheme continues to get better and better (have I said this before!?!)

From 1 April 2015, SMEs attract an uplift on their qualifying R&D expenditure of 230% (up from 225%). This means that in cash terms the tax credit is now worth 33.35%!

So 1/3rd of your expenditure on staff carrying out R&D project work could effectively be subsidised by this generous UK tax incentive – that’s up from c25% just over a year ago.

If you’ve yet to take a look at this incentive – especially if you are a developer, digital agency, creative or engineer or manufacturer – I urge you to do so. You can always get some help from some friendly folk who are R&D tax specialists :)

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R&D tax credits: Key changes from March 2015 Budget Statement

Here is a short summary of the key changes related to the UK R&D tax credit incentive as announced in the March 2015 Budget statement.

Changes include:

  • An increase in tbe SME rate of super-deduction from 225% to 230% from 1 April 2015
  • An increase in the Large company scheme “above the line” credit from 10% to 11% from 1 April 2015
  • Introduction of an advance assurance process from Autumn 2015 for those smaller companies making their first R&D tax claim and seeking some certainty as to eligibility
  • Speedier processing, increased publicity and more…

 

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10 ways to simplify your business

  1. -POPWhat’s your number? What do you need to earn to be happy? What would you like to give to be happy? What’s your definition of success? Have a number – don’t be vague or live in a world of generalities; otherwise you might just become one. Be crystal clear on your number – it can guide everything else you do…
  2. Have a plan. Once clear on your number you need to break it down into your goals – 5 yr / 1 yr / quarterly / monthly / weekly / daily. Hold weekly stand-up meetings with key management to agree what you have collectively achieved this week and what you will achieve together next week. This avoids descending into daily unimportant (although often disarmingly urgent) trivia.
  3. Schedule all tasks in a calendar – share it with key colleagues (maybe family too). So that – as the old saying goes – you should always finish your day on paper before you start it. Remember, what gets scheduled gets done.
  4. Implement systems that can be repeated. This often a painful process but go forward on the basis of thinking “I will do this only once and document it so that others can do it after me”.
  5. Automate your business processes and connect them using cloud technology:- Xero accounting to Capsule CRM to Vend HQ to Harvest time tracking and the list goes on. Tools like IFFFT and Zapier can assist too.
  6. Always be mindful of the 80/20 rule – test your assumptions regarding your (supposed) best (or for that matter) worst customers and the same for your team, suppliers etc. What might be draining your business of time and money (probably both)? How can you squeeze more out of less?
  7. Find leverage. Identify what networks or partners could help you reach out to your preferred customers more quickly if you were to partner up together. You might be targeting the same group of customers. Leverage can be obtained by working together.
  8. Don’t get side-tracked chasing the next shiny object. Marketing is the lifeblood of your business and you should find a handful of ways of generating more leads than you need by mastering them. Don’t fall into the trap of throwing time and money into the next social media channel without mastering some trusted reliable methodologies first.
  9. Don’t fall into the trap of “analysis paralysis”. Strategy can rarely be tested on paper or in a boardroom. It is best learnt on the fly. Test, test, test. Mini projects rolled out that give you information from which you can make more informed strategic decisions.
  10. Keep it simple. Business is complex but we are often guilty of paddling around in circles for fear of making mistakes. By making some seemingly simple steps we can drive forward whilst constantly tweaking as conditions change.

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